FIParent Blog

The Banks Want Your Kids

July 31st, 2006

The Wall Street Journal recently ran a story about banks and other financial institutions that are starting to court young savers.  In the past, it has been very difficult to find banks that would open checking accounts for 13-15 year olds, which is a great time for them to learn how to balance a check book.  Among the banks offering accounts are U.S. Bancorp, Wells Fargo and KeyBank.  (Young Americans Bank in Denver is a pioneer in banking for younger children.  Check them out at http://www.yacenter.org/.

The Journal points out that some of the banks also offer debit or ATM cards.  Depositing your teen’s allowance to a checking account that comes with a debit card gives him or her an opportunity to be introduced to plastic in an environment in which you cannot overspend.  After all, once the checking account runs out of allowance, the card stops working.  (But be sure the account doesn’t come with overdraft protection!) 

Entry Filed under: Financial Literacy